USD/KRW has seen the return of bullish...>

KOREAN WON: USD/KRW has seen the return of bullish impetus in early trade as the

rate has played catch-up to yesterday's market rout, inspired by a growing

concern over the Covid-19's spread across the world. In addition, South Korea

released another grim piece of data this morning. Business confidence slumped

among manufacturers & non-manufacturers alike, with the m'fing sector seeing the

largest deterioration in sentiment since the MERS outbreak in 2015.

- As a reminder, consumer confidence data from earlier this week displayed a

similar trend, falling the most since 2015. Rapidly deteriorating sentiment

gauges have contributed to a mounting pressure on the BoK to reduce borrowing

costs at Thursday's meeting to try and mitigate the impact of Covid-19 outbreak.

- The most recent update puts the no. of Covid19 cases in South Korea at 977. 

- USD/KRW trades +7.35 fig. at KRW1,217.55. Mon/Tues highs at KRW1,220.40/50 are

on the radar and ab break here would open up a multi-year high of KRW1,223.10,

last printed on Aug 6. Bears look for a pullback below KRW1,208.82, which

limited losses yesterday.

- Friday's industrial output print will take focus towards the end of the week.